Broadcasting

November 2, 2006
Worldspace focusing on India

NEW DELHI -- WorldSpace is the only satellite radio service outside of the US, Japan, and South Korea. Through its subscription-based service, WorldSpace broadcasts news, sports, music and educational programming to satellite radios throughout a global area that includes more than four billion people. WorldSpace is also credited with creating the evolution of satellite radio.

WorldSpace was the first to create and broadcast programming via company owned and launched satellites AfriStar and AsiaStar to deliver 100 percent digital audio and exclusive WorldSpace created programming to satellite radio receivers throughout Asia, Europe, the Middle East and Africa. WorldSpace was also one of the principal founding shareholders of XM Satellite Radio in the US and is responsible for some proprietary technology and original programming and format structure, which is currently used to broadcast to over 6.5 million subscribers across the US.

Harshad Jain, chief marketing officer of Worldspace Satellite Radio, India, shares the market algorithms with Convergence Plus.

Convergence Plus: Give us an overview of Worldspace's journey so far.

Harshad Jain: Worldspace launched its services in India in 2000 and introduced the revolutionary concept of satellite radio to the country. In the past six years, we have expanded our retail presence to reach out to customers in over 23 cities and offer an exciting choice of over 40 radio channels playing the widest choice of music, entertainment and information. Each of these are 24-hour channels, dedicated to particular genres of music, news and information, which can be accessed virtually anywhere in the country.

Worldspace pioneered the satellite radio medium and has the world’s largest satellite radio footprint covering over 130 countries including India and China, all of Africa and the Middle East and most of Western Europe – an area that includes ten billion people.

Worldspace undertook an extensive marketing campaign and retail network expansion in 2005 and posted a significant growth in its subscriber base. The company finished the second quarter of 2006 (ended 30 June 2006) with 159,965 subscribers. In India, Worldspace had 119,497 subscribers at the end of Q2-06, up 328 percent from 27,933 subscribers in the second quarter of 2005.

Some Highlights from 2006

• Continued the expansion of distribution and geographic presence in India, extending the retail reach to 23 cities at the end of the second quarter;
• Expanded marketing alliances with Planet M and Music World, leading music retailers in India, as well as distribution alliances with Barista and Café Coffee Day, leading coffee chains;
• Signed Indian music impresario A.R. Rahman as a brand ambassador in India and the launch of the TVC by A.R. Rahman; and
• Launched the stylish new Diva 2 receiver.

CP: What is Satellite Radio? What are its special features?

HJ: Satellite Radio is a subscriber-based radio service that is broadcast directly from satellites. Subscribers are able to receive up to 100 radio stations featuring digital quality music, news, weather, sports, talk radio and other entertainment. A satellite radio set receives signals broadcast by a satellite orbiting more than 22,000 miles above the earth. This allows the listener to follow the radio stations of the service within the beam that covers their geography, no matter where they are within the reach of the beam, because the signals’ reach is not limited by station power and curvature of the Earth.

In satellite radio systems, dozens of individual radio stations can be squeezed into a relatively small amount of bandwidth, allowing for reliable methods of beaming signals from thousands of miles in space directly to satellite radio sets. The signals are encrypted to prevent reception by non-subscribers.

Worldspace is currently the only satellite radio service that offers a truly global platform. We operate 2 satellites, AsiaStar and AfriStar, that reach out to communities across Asia, Africa, the Middle East and significant parts of Europe, with over 62 radio stations and the potential to grow to 160 stations.

Some of the Unique Features of Satellite Radio

Choice: Satellite Radio services deliver unparalleled listening choice with a continuous stream of music, news, sports and entertainment programming. In India, Worldspace Satellite Radio currently offers over 40 radio Channels, spanning diverse musical genres, sports, spiritual & wellness Channels and national and international news. Besides latest hits, satellite radio also offers dedicated specialty channels catering to niche audiences. Every conceivable genre of music, ranging from rock, hip-hop, and bluegrass to jazz, classical, soul and even regional language content is covered comprehensively.

Sound Quality: Satellite radio gives you the guarantee of good reception with digital quality sound. With satellite reception, you either have a signal or you do not. Sound quality is not affected by the strength of the signal, and once you have the signal, it's clear and static-free. Also, reception does not fade as long as you are within the reception area of the satellite signal.

Experience: Satellite radio has diverse and extensive musical offerings. Satellite radio is also largely commercial free and clutter-free. This makes it a more fulfilling and enjoyable experience.

Quality Content: Satellite radio enables in-depth exploration of specific music genres and the use of innovative programming formats that resemble a ‘magazine’ – shows showcasing various aspects of culture, musical education, themed shows and radio plays among other innovative formats that will not find a place on conventional radio programming formats.

CP: Given the fact that India is a price-sensitive market, will 'pay-for-content' strategy appeal to consumers?

HJ: India is a price sensitive market but when customers start to see value in any particular service they are willing to pay for it. WorldSpace has been able to communicate and get people to sample the unique value proposition that satellite radio offers music lovers and this has resulted in an increased growth in our sales over the past year. This is evinced in our sales figures over the recent past. We have grown from 27,933 subscribers in the second quarter of 2005 to 119,497 subscribers at the end of June 2006, up 328 percent.

People have seen value in receiving a choice of over 40 channels, playing their kind of music, airing news from across the world, receiving spiritual and lifestyle information etc in a superior digital quality and without the clutter of advertising. Subscribers also appreciate the fact that they can tune in to regional music from their home states even when based in other parts of the country. At around Rs.150 per month (works to Rs. 5 per day), people get a world of superior quality radio entertainment and that is great value.

CP: How different is satellite radio from conventional radio?

HJ: Satellite radio gives you your kind of music, when you want it - you can choose from over 40 radio channels, each catering to a specific musical genres and news from across the world. All this is brought to you in digital quality, and is virtually ad-free. Our programs, channels and RJs are music-focused and committed to leading listeners through a journey of musical exploration on our Channels.

An entire radio channels dedicated 24x7 to a particular genre of music means in-depth exploration of the genre beyond the obvious. So you can take your pick: 24-hours of pure Bollywood music or even Jazz! We offers listeners truly national radio channels, which means a Malayali living in Kochi or Mumbai can tune in to Malayalam music on RM Radio and catch up with his kind of music.

CP: What is your estimate on the size of audiences that is likely to grow over the next few years?

HJ: Satellite radio is a medium whose time has arrived and we are positive that the subscriber will grow steadily as they appreciate the value proposition that the medium offers them. We are unable to provide forward-looking information on subscriber numbers.

We will continue to execute according to plan, extending our retail network across the country while adding more radio stations to our portfolio and giving the customer immense value through our programming depth. We have in place an extensive 360-degree marketing campaign targeted capturing mind share and getting people to experience our service. This integrated communications campaign will be leveraged to build our subscriber base and highlight the value proposition we offer our listeners.

CP: What other markets is Worldspace focusing on?

HJ: Currently the focus is on India. Within the country we have expanded retail services beyond the metros and are present in over 23 cities across various parts of India. We will continue to grow our retail presence as well as our bouquet of channels to meet the needs of the consumer.